pinnacle associates ltd. - citi private bank · 2018. 6. 29. · pinnacle associates ltd. sec file...

Item 1 Cover Page

Pinnacle Associates Ltd. SEC File Number: 801 – 20841

Pinnacle Associates Ltd. Brochure

Dated 3/30/2012

Contact: Joel Heyman, Chief Compliance Officer

335 Madison Avenue

New York, New York 10017

www.pinnacle-ny.com

This Brochure provides information about the qualifications and business practices Pinnacle

Associates Ltd. (“Pinnacle Associates”). If you have any questions about the contents of this

Brochure, please contact us at (212) 652-3200 or [email protected]. The information in

this Brochure has not been approved or verified by the United States Securities and Exchange

Commission or by any state securities authority.

Additional information about Pinnacle Associates Ltd. is also available on the SEC’s website at

www.adviserinfo.sec.gov.

References herein to Pinnacle Associates Ltd. as a “registered investment adviser” or any reference

to being “registered” does not imply a certain level of skill or training

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Item 2 Material Changes

There have been no material changes made to Pinnacle Associates Ltd.’s disclosure statement since last

year’s Annual Amendment filing on March 31, 2011.

Item 3 Table of Contents

Item 1 Cover Page .................................................................................................................................... 1 Item 2 Material Changes .......................................................................................................................... 2 Item 3 Table of Contents .......................................................................................................................... 2 Item 4 Advisory Business ........................................................................................................................ 3 Item 5 Fees and Compensation ................................................................................................................ 7 Item 6 Performance-Based Fees and Side-by-Side Management ............................................................ 9 Item 7 Types of Clients ............................................................................................................................ 9 Item 8 Methods of Analysis, Investment Strategies and Risk of Loss ..................................................... 9 Item 9 Disciplinary Information ............................................................................................................ 11 Item 10 Other Financial Industry Activities and Affiliations .................................................................. 11 Item 11 Code of Ethics, Participation or Interest in Client Transactions and Personal Trading.............. 13 Item 12 Brokerage Practices .................................................................................................................... 14 Item 13 Review of Accounts .................................................................................................................... 19 Item 14 Client Referrals and Other Compensation .................................................................................. 20 Item 15 Custody ....................................................................................................................................... 20 Item 16 Investment Discretion ................................................................................................................. 21 Item 17 Voting Client Securities .............................................................................................................. 21 Item 18 Financial Information ................................................................................................................. 22

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Item 4 Advisory Business

A. Pinnacle Associates is a corporation formed on January 26, 1984 in the State of New

York. Pinnacle Associates became registered as an Investment Adviser Firm in March

1984. Pinnacle Associates is principally owned by Thomas Passios, Pinnacle Associates’s

President.

B. As discussed below, Pinnacle Associates offers to its clients (individuals, investment

companies, investment limited partnerships, pension and profit sharing plans, business

entities, trusts, estates and charitable organizations, etc.) investment advisory services.

Pinnacle Associates does not hold itself out as providing financial planning, estate

planning or accounting services.

INVESTMENT ADVISORY SERVICES

The client can determine to engage Pinnacle Associates to provide discretionary

investment advisory services on a fee basis. Pinnacle Associates’s annual investment

advisory fee is based upon a percentage (%) of the market value of the assets placed

under Pinnacle Associates’s management (between negotiable and 1.50%) as follows:

Assets Under Management Range of Fees (Annual)

Initial $5 Million 1.25% to 1.50%

Next $5 Million 1.00% to 1.25%

All additional assets 0.75% to 1.00%

MISCELLANEOUS

Limited Consulting/Implementation Services. Although Pinnacle Associates does not

hold itself out as providing financial planning, estate planning or accounting services, to

the extent specifically requested by the client, Pinnacle Associates may provide limited

consultation services to its investment management clients on investment and non-

investment related matters, such as estate planning, tax planning, insurance, etc. Pinnacle

Associates shall not receive any separate or additional fee for any such consultation

services. Neither Pinnacle Associates, nor any of its representatives, serves as an

attorney, accountant, or licensed insurance agent, and no portion of Pinnacle Associates’s

services should be construed as same. To the extent requested by a client, Pinnacle

Associates may recommend the services of other professionals for certain non-investment

implementation purposes (i.e. attorneys, accountants, insurance, etc.), including certain

representatives of Pinnacle Associates in their individual capacities as registered

representatives of a broker-dealer. The client is under no obligation to engage the services

of any such recommended professional. Please Note: If the client engages any such

recommended professional, and a dispute arises thereafter relative to such engagement,

the client agrees to seek recourse exclusively from and against the engaged professional.

Please Also Note: It remains the client’s responsibility to promptly notify Pinnacle

Associates if there is ever any change in his/her/its financial situation or investment

objectives for the purpose of reviewing/evaluating/revising Pinnacle Associates’s

previous recommendations and/or services.

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Private Investment Funds. Pinnacle Associates currently serves as investment adviser

and/or General Partner of certain investment limited partnerships (i.e., the “Partnership(s)”).

The Partnerships rely on an exemption from registration under The Investment Company

Act of 1940 which is available to investment limited partnerships that generally have less than

100 investors or less than 500 investors depending on the exemption. The Partnerships

include:

1. Pinnacle Equity Fund, L.P. – a Delaware limited partnership that seeks long-term growth

of capital by primarily investing in equity securities of small to medium-sized companies that

are believed to be undervalued and offer opportunities for above-average market

performance;

2. Pinnacle International Partners, L.P. – a Delaware limited partnership that seeks to achieve

capital appreciation primarily by investing in equity securities of foreign (i.e., non-U.S.)

companies;

3. Pinmar Investors, L.P. – a Delaware limited partnership that seeks to achieve annual rates

of return in excess of the S&P 500 stock index by utilizing a disciplined investment style of

purchasing the equity securities of undervalued domestic (i.e., U.S.) companies. Pinnacle

Associates is the Co-General Partner of Pinmar. The other General Partner is Metronome

Associates, L.L.C., which is principally owned by Peter N. Marron, a Senior Vice President

of Pinnacle Associates;

4. Pinnacle Opportunity Fund, L.P. – a Delaware limited partnership that seeks long-term

growth of capital primarily by investing in equity securities of domestic and foreign (i.e., non-

U.S.) companies;

5. Pinnacle International Small Cap Partners, L.P. - a Delaware limited partnership that

seeks long-term growth of capital primarily by investing in the equity securities of

foreign (i.e. non-U.S.) small companies; and

To the extent certain of Pinnacle Associates’s individual advisory clients qualify, they will be

eligible to participate as limited partners of the Partnerships. All relevant information, terms

and conditions relative to the Partnerships, including the compensation to be received by

Pinnacle Associates as the General Partner, suitability, risk factors, and potential conflicts of

interest, are set forth in the Confidential Private Offering Memorandum (the

“Memorandum”), Limited Partnership Agreement (the “Agreement”), and Subscription

Agreement, which each limited partner is required to receive and/or execute prior to being

accepted as a limited partner of any of the Partnerships.

As General Partner, Pinnacle Associates, pursuant to the terms of each specific

Memorandum, shall receive a quarterly basic management fee. In addition, Pinnacle

Associates, in accordance with the terms and conditions specifically set forth in the

Memorandum and Agreement, may also receive performance related compensation in

accordance with the requirements under Rule 205-3 of the Investment Advisers Act of 1940.

Partnership funds are held by a qualified custodian and no fees, allocations, distributions or

other payments will be made to Pinnacle Associates as General Partner by such custodian

until calculated by Pinnacle Associates’s Limited Partnership Administrator and the

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calculation verified by Pinnacle Associates’s Controller. Relative to payments to be received

by Pinnacle Associates for its investment management services to the Partnership, Pinnacle

Associates does not maintain custody or possession of Partnership assets within the meaning

of Rule 206(4)-2 under the Investment Advisers Act of 1940.

Pinnacle Associates will devote its best efforts with respect to its management of both the

Partnerships and its individual client accounts. Given the above discussion relative to the

objectives, suitability, risk factors, and qualifications for participation in the Partnerships,

Pinnacle Associates may give advice or take action with respect to the Partnerships that

differs from that for individual client accounts. To the extent that a particular investment

is suitable for both the Partnerships and certain individual client accounts, such

investments will be allocated between the Partnerships and the individual client accounts

pro-rata based on the assets under management or in some other manner which Pinnacle

Associates determines is fair and equitable under the circumstances to all of its clients.

Please Note: Private investment funds generally involve various risk

factors, including, but not limited to, potential for complete loss of

principal, liquidity constraints and lack of transparency, a complete

discussion of which is set forth in each fund’s offering documents, which

will be provided to each client for review and consideration. Unlike other

liquid investments that a client may maintain, private investment funds

do not provide daily liquidity or pricing. Each prospective client investor

will be required to complete a Subscription Agreement, pursuant to

which the client shall establish that he/she is qualified for investment in

the fund, and acknowledges and accepts the various risk factors that are

associated with such an investment.

Please Also Note: Valuation. In the event that Pinnacle Associates

references private investment funds owned by the client on any

supplemental account reports prepared by Pinnacle Associates, the

value(s) for all such private investment funds shall reflect either the

initial purchase and/or the most recent valuation provided by the fund

sponsor. If the valuation reflects the initial purchase price (and/or a value

as of a previous date), the current value(s) (to the extent ascertainable)

could be significantly more or less than the original purchase price.

Please Note (Wrap/Managed Account programs): In the event that Pinnacle

Associates is engaged to provide investment management services as part of an

unaffiliated wrap-fee program, Pinnacle Associates will be unable to negotiate

commissions and/or transaction costs. Under a wrap program, the wrap program sponsor

arranges for the investor participant to receive investment advisory services, the

execution of securities brokerage transactions, custody and reporting services for a single

specified fee. Participation in a wrap program may cost the participant more or less than

purchasing such services separately. In the event that Pinnacle Associates is engaged to

provide investment management services as part of an unaffiliated managed account

program, Pinnacle Associates will likewise be unable to negotiate commissions and/or

transaction costs. If the program is offered on a non-wrap basis, the program sponsor will

determine the broker-dealer though which transactions must be effected, and the amount

of transaction fees and/or commissions to be charged to the participant investor accounts.

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Please Note: Cash Positions. At any specific point in time, depending upon perceived

or anticipated market conditions/events (there being no guarantee that such anticipated

market conditions/events will occur), Pinnacle Associates may maintain cash positions

for defensive purposes. All cash positions (money markets, etc.) shall be included as part

of assets under management for purposes of calculating Pinnacle Associates’s advisory

fee. Pinnacle Associates’s Chief Compliance Officer, Joel Heyman, remains

available to address any questions that a client or prospective client may have

regarding the above fee billing practice.

Cross Transactions. In limited circumstances, Pinnacle Associates may engage in cross-

transaction pursuant to which Pinnacle Associates may effect transactions between two of

its managed client accounts (i.e., arranging for the clients’ securities trades by “crossing”

these trades when Pinnacle Associates believes that such transactions are beneficial to its

clients). For all such transactions, neither Pinnacle Associates, nor any affiliate will be

acting as a broker, and will not receive any commission or transaction-based compensation.

The client may revoke Pinnacle Associates’s cross-transaction authority at any time upon

written notice to Pinnacle Associates.

Client Obligations. In performing its services, Pinnacle Associates shall not be required

to verify any information received from the client or from the client’s other professionals,

and is expressly authorized to rely thereon. Moreover, each client is advised that it

remains his/her/its responsibility to promptly notify Pinnacle Associates if there is ever

any change in his/her/its financial situation or investment objectives for the purpose of

reviewing/evaluating/revising Pinnacle Associates’s previous recommendations and/or

services.

Disclosure Statement. A copy of Pinnacle Associates’s written Brochure as set forth on

Part 2A of Form ADV shall be provided to each client prior to, or contemporaneously

with, the execution of the Investment Advisory Agreement.

C. Pinnacle Associates shall provide investment advisory services specific to the needs of

each client. Prior to providing investment advisory services, an investment adviser

representative will ascertain each client’s investment objective(s). Thereafter, Pinnacle

Associates shall allocate and/or recommend that the client allocate investment assets

consistent with the designated investment objective(s). The client may, at anytime,

impose reasonable restrictions, in writing, on Pinnacle Associates’s services.

D. Pinnacle Associates does not offer a wrap fee program for its investment advisory

services. However, Pinnacle Associates is a participating investment adviser in certain

unaffiliated wrap and managed account fee programs. There is no significant difference

between how Pinnacle Associates manages wrap fee accounts and non-wrap fee accounts.

Please Note: When managing a client’s account on a wrap fee basis, Pinnacle Associates

shall receive as payment for its investment advisory services, the balance of the wrap fee

after all other costs incorporated into the wrap fee have been deducted.

E. As of December 31, 2011, Pinnacle Associates had $4,594,000,000.00 in assets under

management on a discretionary basis.

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Item 5 Fees and Compensation

A. The client can determine to engage Pinnacle Associates to provide discretionary

investment advisory services on a fee basis.

INVESTMENT ADVISORY SERVICES

If a client determines to engage Pinnacle Associates to provide discretionary investment

advisory services on a fee basis, Pinnacle Associates’s annual investment advisory fee

shall be based upon a percentage (%) of the market value and type of assets placed under

Pinnacle Associates’s management (between negotiable and 1.50%) as follows:

Assets Under Management Range of Fees (Annual)

Initial $5 Million 1.25% to 1.50%

Next $5 Million 1.00% to 1.25%

All additional assets 0.75% to 1.00%

B. Clients may elect to have Pinnacle Associates’s advisory fees deducted from their

custodial account. Both Pinnacle Associates's Investment Advisory Agreement and the

custodial/ clearing agreement may authorize the custodian to debit the account for the

amount of Pinnacle Associates's investment advisory fee and to directly remit that

management fee to Pinnacle Associates in compliance with regulatory procedures. In the

limited event that Pinnacle Associates bills the client directly, payment is due upon

receipt of Pinnacle Associates’s invoice. Pinnacle Associates shall deduct fees and/or bill

clients quarterly in advance or arrears, based upon the market value of the assets on the

last business day of the previous quarter.

C. As discussed below, unless the client directs otherwise or an individual client’s

circumstances require, Pinnacle Associates shall generally recommend that Charles

Schwab and Co., Inc. (“Schwab”), Matrix Capital Group, Inc. (“Matrix”), Chase

Manhattan Bank (“Chase”) Citigroup, TD Ameritrade (“Ameritrade”), Fidelity

Investments (“Fidelity”) and/or Morgan Stanley Smith Barney (“Morgan Stanley”) serve

as the broker-dealer/custodian for client investment management assets. Broker-dealers

such as Schwab, Matrix, Chase, Citigroup, Ameritrade, Fidelity and Morgan Stanley

charge brokerage commissions and/or transaction fees for effecting certain securities

transactions (i.e. transaction fees are charged for certain no-load mutual funds,

commissions are charged for individual equity and fixed income securities transactions).

In addition to Pinnacle Associates’s investment management fee, brokerage commissions

and/or transaction fees, clients will also incur, relative to all mutual fund and exchange

traded fund purchases, charges imposed at the fund level (e.g. management fees and other

fund expenses. When beneficial to the client, individual fixed-income and/or equity

transactions may be effected through broker-dealers with whom Pinnacle Associates

and/or the client have entered into arrangements for prime brokerage clearing services,

including effecting certain client transactions through other SEC registered and FINRA

member broker-dealers (in which event, the client generally will incur both the

transaction fee charged by the executing broker-dealer and a “tradeaway” fee charged by

the account custodian).

D. Pinnacle Associates's annual investment advisory fee shall be prorated and paid quarterly,

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in advance or arrears, based upon the market value of the assets on the last business day

of the previous quarter. The Investment Advisory Agreement between Pinnacle Associates

and the client will continue in effect until terminated by either party by written notice in

accordance with the terms of the Investment Advisory Agreement. Upon termination,

Pinnacle Associates shall either refund the pro-rated portion of the advanced advisory fee

paid based upon the number of days remaining in the billing quarter or debit the account

for the pro-rated portion of the unpaid advanced advisory fee based upon the number of

days that services were provided during the billing quarter.

E. Securities Commission Transactions. In the event that the client desires, the client can

engage certain of Pinnacle Associates’s representatives, in their individual capacities, as

registered representatives of Matrix Capital Group, Inc., an SEC registered and FINRA

member broker-dealer, to implement investment recommendations on a commission

basis. In the event the client chooses to purchase investment products through Matrix,

Matrix will charge brokerage commissions to effect securities transactions, a portion of

which commissions Matrix shall pay to Pinnacle Associates’s representatives, as

applicable. The brokerage commissions charged by Matrix may be higher or lower than

those charged by other broker-dealers. In addition, Matrix, as well as Pinnacle

Associates’s Representatives, relative to commission mutual fund purchases, may also

receive additional ongoing 12b-1 trailing commission compensation directly from the

mutual fund company during the period that the client maintains the mutual fund

investment.

1. Conflict of Interest: The recommendation that a client purchase a commission

product from Pinnacle Associates’s representatives presents a conflict of interest,

as the receipt of commissions may provide an incentive to recommend

investment products based on commissions to be received, rather than on a

particular client’s need. No client is under any obligation to purchase any

commission products from Pinnacle Associates’s representatives. Pinnacle

Associates’s Chief Compliance Officer, Joel Heyman, remains available to

address any questions that a client or prospective client may have regarding

the above conflict of interest.

2. Please Note: Clients may purchase investment products recommended by

Pinnacle Associates through other, non-affiliated broker dealers or agents.

3. Pinnacle Associates does not receive more than 50% of its revenue from advisory

clients as a result of commissions or other compensation for the sale of

investment products Pinnacle Associates recommends to its clients.

4. When Pinnacle Associates’s representatives sell an investment product on a

commission basis, Pinnacle Associates does not charge an advisory fee in

addition to the commissions paid by the client for such product. When providing

services on an advisory fee basis, Pinnacle Associates’s representatives do not

also receive commission compensation for such advisory services (except for any

ongoing 12b-1 trailing commission compensation that may be received as

previously discussed). However, a client may engage Pinnacle Associates to

provide investment management services on an advisory fee basis and separate

from such advisory services purchase an investment product from Pinnacle

Associates’s representatives on a separate commission basis.

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Item 6 Performance-Based Fees and Side-by-Side Management

Rule 205-3 of the Investment Advisers Act of 1940 permits a registered investment

adviser to enter into a performance fee agreement with certain sophisticated clients who

have the capacity to bear the potential additional risks of such a fee arrangement. An

adviser can rely on Rule 205-3 only if the performance fee agreement is with "eligible"

clients. Eligible clients are defined in the Rule as natural persons and companies that

have either at least $1,000,000.00 under management with Pinnacle Associates

immediately after entering into a performance fee agreement or a net worth at the time

the agreement is entered into in excess of $2 Million (i.e. a natural person’s net worth

may include assets held jointly with a spouse).

Consistent with the parameters of Rule 205-3 of the Investment Advisers Act of 1940 (to

the extent Rule 205-3 is applicable), Pinnacle Associates (and/or Pinnacle Associates’s

affiliated entities) may also receive, both for managed accounts and for the Partnerships,

incentive or performance fee compensation on a fully disclosed written basis. Because

Pinnacle Associates and its representatives manage client accounts that charge both an

asset-based fee and/or a performance based fee, this arrangement creates a conflict of

interest, as Pinnacle Associates and its representatives have an incentive to favor

investments where Pinnacle Associates receives both an asset-based fee and a

performance fee. Pinnacle Associates’s Chief Compliance Officer, Joel Heyman,

remains available to address any questions regarding this conflict of interest.

Item 7 Types of Clients

Pinnacle Associates’s clients shall generally include individuals, investment companies,

investment limited partnerships, pension and profit sharing plans, business entities, trusts,

estates and charitable organizations. Pinnacle Associates generally requires a $1,000,000

minimum asset level for investment advisory services. Pinnacle Associates, in its sole

discretion, may reduce its investment management fee and/or reduce or waive its

minimum asset requirement based upon certain criteria (i.e. anticipated future earning

capacity, anticipated future additional assets, dollar amount of assets to be managed,

related accounts, account composition, negotiations with client, etc.).

Item 8 Methods of Analysis, Investment Strategies and Risk of Loss

A. Pinnacle Associates may utilize the following methods of security analysis:

Fundamental - (analysis performed on historical and present data, with the goal

of making financial forecasts)

Pinnacle Associates may utilize the following investment strategies when implementing

investment advice given to clients:

Long Term Purchases (securities held at least a year)

Short Sales (contracted sale of borrowed securities with an obligation to make the

lender whole)

Options (contract for the purchase or sale of a security at a predetermined price

during a specific period of time)

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Please Note: Investment Risk. Different types of investments involve varying degrees

of risk, and it should not be assumed that future performance of any specific investment

or investment strategy (including the investments and/or investment strategies

recommended or undertaken by Pinnacle Associates) will be profitable or equal any

specific performance level(s).

B. Pinnacle Associates’s methods of analysis and investment strategies do not present any

significant or unusual risks.

However, every method of analysis has its own inherent risks. To perform an accurate

market analysis Pinnacle Associates must have access to current/new market information.

Pinnacle Associates has no control over the dissemination rate of market information;

therefore, unbeknownst to Pinnacle Associates, certain analyses may be compiled with

outdated market information, severely limiting the value of Pinnacle Associates’s

analysis. Furthermore, an accurate market analysis can only produce a forecast of the

direction of market values. There can be no assurances that a forecasted change in market

value will materialize into actionable and/or profitable investment opportunities.

Pinnacle Associates’s primary investment strategy- Long Term Purchases- is a

fundamental investment strategy. However, every investment strategy has its own

inherent risks and limitations. For example, longer term investment strategies require a

longer investment time period to allow for the strategy to potentially develop. Shorter

term investment strategies require a shorter investment time period to potentially develop

but, as a result of more frequent trading, may incur higher transactional costs when

compared to a longer term investment strategy.

In addition to the fundamental investment strategies discussed above, Pinnacle Associates

may also implement and/or recommend – short selling and/or options transactions. Each

of these strategies has a high level of inherent risk. (See discussion below).

Short selling is an investment strategy with a high level of inherent risk. Short selling,

involves the selling of assets that the investor does not own. The investor borrows the

assets from a third party lender (i.e. Broker-Dealer) with the obligation of buying

identical assets at a later date to return to the third party lender. Individuals who engage

in this activity shall only profit from a decline in the price of the assets between the

original date of sale and the date of repurchase. Conversely, the short seller will incur a

loss if the price of the assets rises. Other costs of shorting may include a fee for

borrowing the assets and payment of any dividends paid on the borrowed assets.

The use of options transactions as an investment strategy involves a high level of inherent

risk. Option transactions establish a contract between two parties concerning the buying

or selling of an asset at a predetermined price during a specific period of time. During the

term of the option contract, the buyer of the option gains the right to demand fulfillment

by the seller. Fulfillment may take the form of either selling or purchasing a security

depending upon the nature of the option contract. Generally, the purchase or the

recommendation to purchase an option contract by Pinnacle Associates shall be with the

intent of offsetting/”hedging” a potential market risk in a client’s portfolio. Please Note:

Although the intent of the options-related transactions that may be implemented by

Pinnacle Associates is to hedge against principal risk, certain of the options-related

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strategies (i.e. straddles, short positions, etc), may, in and of themselves, produce

principal volatility and/or risk. Thus, a client must be willing to accept these enhanced

volatility and principal risks associated with such strategies. In light of these enhanced

risks, client may direct Pinnacle Associates, in writing, not to employ any or all such

strategies for his/her/their/its accounts.

C. Currently, Pinnacle Associates primarily allocates client investment assets among various

individual equity (stocks), debt (bonds) and fixed income securities, and, to a much lesser

extent, among no load and load-waived mutual funds, on a discretionary basis in

accordance with the client’s designated investment objective(s).

Item 9 Disciplinary Information

Pinnacle Associates has not been the subject of any disciplinary actions.

Item 10 Other Financial Industry Activities and Affiliations

A. Registered Representatives of Matrix Capital Group, Inc. As disclosed above in Item

5.E, certain of Pinnacle Associates’s representatives are also registered representatives of

Matrix, an SEC registered and FINRA member broker-dealer.

B. Neither Pinnacle Associates, nor its representatives, are registered or have an application

pending to register, as a futures commission merchant, commodity pool operator, a

commodity trading advisor, or a representative of the foregoing.

C.

1. Broker Dealer. As disclosed above in Item 5.E, certain of Pinnacle Associates’s

representatives are registered representatives of Matrix, an SEC Registered and

FINRA member broker-dealer. Clients can choose to engage certain of Pinnacle

Associates’s representatives, in their individual capacities, to effect securities

brokerage transactions on a commission basis.

Conflict of Interest: The recommendation by certain of Pinnacle Associates’s

representatives that a client purchase a securities commission product presents a

conflict of interest, as the receipt of commissions may provide an incentive to

recommend investment products based on commissions to be received, rather

than on a particular client’s need. No client is under any obligation to purchase

any commission products from Pinnacle Associates’s representatives. Clients are

reminded that they may purchase securities products recommended by Pinnacle

Associates through other, non-affiliated broker-dealers. Pinnacle Associates’s

Chief Compliance Officer, Joel Heyman, remains available to address any

questions that a client or prospective client may have regarding the above

conflict of interest.

2. Private Investment Funds. As disclosed it Item 4.B above, Pinnacle Associates

currently serves as investment adviser and/or General Partner of certain investment

limited partnerships (i.e., the “Partnership(s)”). To the extent certain of Pinnacle

Associates’s individual advisory clients qualify, they will be eligible to participate as

limited partners of the Partnerships. All relevant information, terms and conditions

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relative to the Partnerships, including the compensation to be received by Pinnacle

Associates as the General Partner, suitability, risk factors, and potential conflicts of



Agreement, which each limited partner is required to receive and/or execute prior to

being accepted as a limited partner of any of the Partnerships. As General Partner,

Pinnacle Associates, pursuant to the terms of each specific Memorandum, shall receive a

quarterly basic management fee. In addition, Pinnacle Associates, in accordance with the

terms and conditions specifically set forth in the Memorandum and Agreement, may also

receive performance related compensation in accordance with the requirements under

Rule 205-3 of the Investment Advisers Act of 1940.

Please Note: Private investment funds generally involve various risk

factors including, but not limited to, potential for complete loss of

principal, liquidity constraints and lack of transparency, a complete

discussion of which is set forth in each offering documents, which will

be provided to each client for review and consideration. Unlike other

liquid investments that a client may maintain, private investment funds

do not provide daily liquidity or pricing. Each prospective client investor

will be required to complete a Subscription Agreement, pursuant to

which the client shall establish that he/she is qualified for investment in

the fund, and acknowledges and accepts the various risk factors that are

associated with such an investment.

Please Also Note: Valuation. In the event that Pinnacle Associates

references private investment funds owned by the client on any

supplemental account reports prepared by Pinnacle Associates, the

value(s) for all such private investment funds shall reflect either the

initial purchase and/or the most recent valuation provided by the fund

sponsor. If the valuation reflects the initial purchase price (and/or a value

as of a previous date), the current value(s) (to the extent ascertainable)

could be significantly more or less than the original purchase price.

Please Also Note: Because Pinnacle Associates may earn compensation

from the Partnerships that may exceed the fee that Pinnacle Associates

would earn under its standard “assets under management” fee schedule

referenced at Item 4.B above, the recommendation that a client become a

Partnership(s) investor presents a conflict of interest. No client is under

any obligation to become a Partnership(s) investor. Pinnacle

Associates’s Chief Compliance Officer, Joel Heyman, remains

available to address any questions regarding this conflict of interest.

D. Pinnacle Associates does not receive, directly or indirectly, compensation from

investment advisors that it recommends or selects for its clients.

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Item 11 Code of Ethics, Participation or Interest in Client Transactions and

Personal Trading

A. Pinnacle Associates maintains an investment policy relative to personal securities

transactions. This investment policy is part of Pinnacle Associates’s overall Code of

Ethics, which serves to establish a standard of business conduct for all of Pinnacle

Associates’s Representatives that is based upon fundamental principles of openness,

integrity, honesty and trust, a copy of which is available upon request.

In accordance with Section 204A of the Investment Advisers Act of 1940, Pinnacle

Associates also maintains and enforces written policies reasonably designed to prevent

the misuse of material non-public information by Pinnacle Associates or any person

associated with Pinnacle Associates.

B. As disclosed in Item 4.B above, Pinnacle Associates currently serves as investment adviser

and/or General Partner of certain investment limited partnerships (i.e., the “Partnership(s)”).

To the extent certain of Pinnacle Associates’s individual advisory clients qualify, they will be

eligible to participate as limited partners of the Partnerships. All relevant information, terms

and conditions relative to the Partnerships, including the compensation to be received by

Pinnacle Associates as the General Partner, suitability, risk factors, and potential conflicts of



Agreement, which each limited partner is required to receive and/or execute prior to being

accepted as a limited partner of any of the Partnerships. As General Partner, Pinnacle

Associates, pursuant to the terms of each specific Memorandum, shall receive a quarterly

basic management fee. In addition, Pinnacle Associates, in accordance with the terms and

conditions specifically set forth in the Memorandum and Agreement, may also receive

performance related compensation in accordance with the requirements under Rule 205-3 of

the Investment Advisers Act of 1940.

Please Note: Because Pinnacle Associates may earn compensation from the Partnerships

that may exceed the fee that Pinnacle Associates would earn under its standard “assets

under management” fee schedule referenced at Item 4.B above, the recommendation that

a client become a Partnership(s) investor presents a conflict of interest. No client is

under any obligation to become a Partnership(s) investor. Pinnacle Associates’s Chief

Compliance Officer, Joel Heyman, remains available to address any questions

regarding this conflict of interest.

C. Pinnacle Associates and/or representatives of Pinnacle Associates may buy or sell

securities that are also recommended to clients. This practice may create a situation

where Pinnacle Associates and/or representatives of Pinnacle Associates are in a position

to materially benefit from the sale or purchase of those securities. Therefore, this

situation creates a potential conflict of interest. Practices such as “scalping” (i.e., a

practice whereby the owner of shares of a security recommends that security for

investment and then immediately sells it at a profit upon the rise in the market price

which follows the recommendation) could take place if Pinnacle Associates did not have

adequate policies in place to detect such activities. In addition, this requirement can help

detect insider trading, “front-running” (i.e., personal trades executed prior to those of

Pinnacle Associates’s clients) and other potentially abusive practices.

14

Pinnacle Associates has a personal securities transaction policy in place to monitor the

personal securities transactions and securities holdings of each of Pinnacle Associates’s

“Access Persons”. Pinnacle Associates’s securities transaction policy requires that an

Access Person of Pinnacle Associates must provide the Chief Compliance Officer or

his/her designee with a written report of their current securities holdings within ten (10)

days after becoming an Access Person. Additionally, each Access Person must provide

the Chief Compliance Officer or his/her designee with a written report of the Access

Person’s current securities holdings at least once each twelve (12) month period

thereafter on a date Pinnacle Associates selects; provided, however that at any time that

Pinnacle Associates has only one Access Person, he or she shall not be required to submit

any securities report described above.

D. Pinnacle Associates and/or representatives of Pinnacle Associates may buy or sell

securities, at or around the same time as those securities are recommended to clients. This

practice creates a situation where Pinnacle Associates and/or representatives of Pinnacle

Associates are in a position to materially benefit from the sale or purchase of those

securities. Therefore, this situation creates a potential conflict of interest. As indicated

above in Item 11.C, Pinnacle Associates has a personal securities transaction policy in

place to monitor the personal securities transaction and securities holdings of each of

Pinnacle Associates’s Access Persons.

Item 12 Brokerage Practices

A. In the event that the client requests that Pinnacle Associates recommend a broker-dealer/custodian for execution and/or custodial services (exclusive of those clients that may direct Pinnacle Associates to use a specific broker-dealer/custodian), Pinnacle Associates generally recommends that investment management accounts be maintained at Schwab, Matrix, Chase, Citigroup, Ameritrade, Fidelity and/or Morgan Stanley. Prior to engaging Pinnacle Associates to provide investment management services, the client will be required to enter into a formal Investment Advisory Agreement with Pinnacle Associates setting forth the terms and conditions under which Pinnacle Associates shall manage the client's assets, and a separate custodial/clearing agreement with each designated broker-dealer/custodian. Factors that Pinnacle Associates considers in recommending Schwab, Matrix, Chase,

Citigroup, Ameritrade, Fidelity and/or Morgan Stanley (or any other broker-

dealer/custodian to clients) include historical relationship with Pinnacle Associates,

financial strength, reputation, execution capabilities, pricing, research, and service.

Although the commissions and/or transaction fees paid by Pinnacle Associates's clients

shall comply with Pinnacle Associates's duty to obtain best execution, a client may pay a

commission that is higher than another qualified broker-dealer might charge to effect the

same transaction where Pinnacle Associates determines, in good faith, that the

commission/transaction fee is reasonable in relation to the value of the brokerage and

research services received. In seeking best execution, the determinative factor is not the

lowest possible cost, but whether the transaction represents the best qualitative execution,

taking into consideration the full range of a broker-dealer’s services, including the value

of research provided, execution capability, commission rates, and responsiveness.

Accordingly, although Pinnacle Associates will seek competitive rates, it may not

necessarily obtain the lowest possible commission rates for client account transactions.

15

The brokerage commissions or transaction fees charged by the designated broker-

dealer/custodian are exclusive of, and in addition to, Pinnacle Associates's investment

management fee. Pinnacle Associates’s best execution responsibility is qualified if

securities that it purchases for client accounts are mutual funds that trade at net asset

value as determined at the daily market close.

1. Schwab Referrals

Pinnacle Associates receives client referrals from Charles Schwab & Co., Inc.

(“Schwab”) through Pinnacle Associates’s participation in Schwab Advisor

Network™ (“the Service”), designed to help investors find an independent

investment advisor. Schwab is a broker-dealer independent of an unaffiliated with

Pinnacle Associates. Schwab does not supervise Pinnacle Associates and has no

responsibility for Pinnacle Associates’s management of clients’ portfolios or Pinnacle

Associates’s other advice or services. Pinnacle Associates pays Schwab fees to

receive client referrals through the Service. Pinnacle Associates’s participation in the

Service may raise potential conflicts of interest described below.

Pinnacle Associates pays Schwab a Participation Fee on all referred clients’ accounts

that are maintained in custody at Schwab and a Non-Schwab Custody Fee on all

accounts that are maintained at, or transferred to, another custodian. The

Participation Fee paid by Pinnacle Associates is a percentage of the fees owed by the

client to Pinnacle Associates or a percentage of the value of the assets in the client’s

account, subject to a minimum Participation Fee. Pinnacle Associates pays Schwab

the Participation Fee for so long as the referred client’s account remains in custody at

Schwab. The Participation Fee is billed to Pinnacle Associates quarterly and may be

increased, decreased or waived by Schwab from time to time. The Participation Fee is

paid by Pinnacle Associates and not by the client. Pinnacle Associates has agreed not

to charge clients referred through the Service fees or costs greater than the fees or

costs Pinnacle Associates charges clients with similar portfolios (pursuant to Pinnacle

Associates’s standard fee schedule as in effect from time to time) who were not

referred through the Service.

Pinnacle Associates generally pays Schwab a Non-Schwab Custody Fee if custody of

a referred client’s account is not maintained by, or assets in the account are

transferred from Schwab, unless the client was solely responsible for the decision not

to maintain custody at Schwab. The Non-Schwab Custody Fee is a one-time payment

equal to a percentage of the assets placed in custody other than at Schwab. The Non-

Schwab Custody Fee is higher than the Participation Fees Pinnacle Associates

generally would pay in a single year. Thus, Pinnacle Associates will have an

incentive to recommend that client accounts be held in custody at Schwab.

The Participation and Non-Schwab Custody Fees will be based on assets in accounts

of Pinnacle Associates’s clients who were referred by Schwab and those referred

clients’ family members living in the same household. Thus, Pinnacle Associates

will have incentives to encourage household members of clients referred through the

Service to maintain custody of their accounts and execute transactions at Schwab and

to instruct Schwab to debit Pinnacle Associates’s fees directly from the accounts.

For accounts of Pinnacle Associates’s clients maintained in custody at Schwab,

Schwab will not charge the client separately for custody but will receive

compensation from Pinnacle Associates’s clients in the form of commissions or other

16

transaction-related compensation on securities trades executed through Schwab.

Schwab also will receive a fee (generally lower than the applicable commission on

trades it executes) for clearance and settlement of trades to be executed through

Schwab rather than another broker-dealer. Pinnacle Associates nevertheless

acknowledges its duty to seek best execution of trades for client accounts. Trades for

client accounts held in custody at Schwab may be executed through a different

broker-dealer than trades for Pinnacle Associates’s other clients. Thus, trades for

accounts custodied at Schwab may be executed at different times and different prices

than trades for other accounts that are executed at other broker-dealers.

Pinnacle Associates’s Chief Compliance Officer, Joel Heyman, remains


regarding the above arrangement and any corresponding conflict of interest

such arrangement may create.

Ameritrade AdvisorDirect

Pinnacle Associates participates in the institutional advisor program (the “Program”)

offered by TD Ameritrade Institutional. TD Ameritrade Institutional is a division of

TD Ameritrade Inc., member FINRA/SIPC/NFA (“Ameritrade”), an unaffiliated

SEC‐registered broker‐dealer and FINRA member. Ameritrade offers to

independent investment advisors services which include custody of securities, trade

execution, clearance and settlement of transactions. Pinnacle Associates receives

some benefits from Ameritrade through its participation in the Program.

Pinnacle Associates may receive client referrals from Ameritrade through its

participation in Ameritrade AdvisorDirect (the “AdvisorDirect”). In addition to

meeting the minimum eligibility criteria for participation in AdvisorDirect, Pinnacle

Associates may have been selected to participate in AdvisorDirect based on the

amount and profitability to Ameritrade of the assets in, and trades placed for, client

accounts maintained with Ameritrade. Ameritrade is a discount broker-dealer

independent of and unaffiliated with Pinnacle Associates and there is no employee or

agency relationship between them. Ameritrade has established the referral program

as a means of referring its brokerage customers and other investors seeking fee-based

personal investment management services or financial planning services to

independent investment advisors. Ameritrade does not supervise Pinnacle Associates

and has no responsibility for Pinnacle Associates’s management of client portfolios

or Pinnacle Associates’s other advice or services. Pinnacle Associates pays

Ameritrade an on-going fee for each successful client referral. This fee is usually a

percentage (not to exceed 25%) of the advisory fee that the client pays to Pinnacle

Associates (“Solicitation Fee”). Pinnacle Associates will also pay Ameritrade the

Solicitation Fee on any advisory fees received by Pinnacle Associates from any of a

referred client’s family members, including a spouse, child or any other immediate

family member who resides with the referred client and hired Pinnacle Associates on

the recommendation of such referred client. Pinnacle Associates will not charge

clients referred through AdvisorDirect any fees or costs higher than its standard fee

schedule offered to its clients or otherwise pass Solicitation Fees paid to Ameritrade

to its clients.

Pinnacle Associates’s participation in AdvisorDirect raises potential conflicts of

interest. Ameritrade will most likely refer clients through AdvisorDirect to

investment advisors that encourage their clients to custody their assets at Ameritrade

17

and whose client accounts are profitable to Ameritrade. Consequently, in order to

obtain client referrals from Ameritrade, Pinnacle Associates may have an incentive to

recommend to clients that the assets under management by Pinnacle Associates be

held in custody with Ameritrade and to place transactions for client accounts with

Ameritrade. In addition, Pinnacle Associates has agreed not to solicit clients referred

to it through AdvisorDirect to transfer their accounts from Ameritrade or to establish

brokerage or custody accounts at other custodians, except when its fiduciary duties

require doing so. Pinnacle Associates’s participation in AdvisorDirect does not

diminish its duty to seek best execution of trades for client accounts.

In addition, Pinnacle Associates may receive additional benefits from participation in

AdvisorDirect. There is no direct link between Pinnacle Associates’s participation in

the program and the investment advice it gives to its clients, although Pinnacle

Associates receives economic benefits through its participation in the program that

are typically not available to Ameritrade retail investors. These benefits include the

receipt of duplicate client statements; access to a trading desk serving adviser

participants; access to block trading (which provides the ability to aggregate

securities transactions for execution and then allocate the appropriate shares to client

accounts); the ability to have advisory fees deducted directly from client accounts;

access to an electronic communications network for client order entry and account

information; access to mutual funds with no transaction fees and to certain

institutional money managers; and discounts on compliance, marketing, research,

technology, and practice management products or services provided to Pinnacle

Associates by third party vendors. The benefits received by Pinnacle Associates or its

personnel through participation in the program do not depend on the amount of

brokerage transactions directed to Ameritrade. As part of its fiduciary duties to

clients, Pinnacle Associates endeavors at all times to put the interests of its clients

first. Clients should be aware, however, that the receipt of economic benefits by

Pinnacle Associates or its representatives creates a conflict of interest.





Fidelity Wealth Advisor Solutions

Pinnacle Associates may receive client referrals from Fidelity through its

participation in the Fidelity Wealth Advisor Solutions program (the “Program”).

Pinnacle Associates does not currently pay a fee to Fidelity for any referrals. Pinnacle

Associates’s participation in the Program raises potential conflicts of interest.

Fidelity will most likely refer clients through the Program to investment advisors that

encourage their clients to custody their assets at Fidelity and whose client accounts

are profitable to Fidelity. Consequently, in order to obtain client referrals from

Fidelity, Pinnacle Associates may have an incentive to recommend to clients that the

assets under management by Pinnacle Associates be held in custody with Fidelity and

to place transactions for client accounts with Fidelity. Pinnacle Associates’s

participation in Program does not diminish its duty to seek best execution of trades

for client accounts.



18



Research and Additional Benefits

Although not a material consideration when determining whether to recommend that

a client utilize the services of a particular broker-dealer/custodian, Pinnacle

Associates may receive from Schwab, Matrix, Chase, Citigroup, Ameritrade, Fidelity

and/or Morgan Stanley (or another broker-dealer/custodian) without cost (and/or at a

discount) support services and/or products, certain of which assist Pinnacle

Associates to better monitor and service client accounts maintained at such

institutions. Included within the support services that may be obtained by Pinnacle

Associates may be investment-related research, pricing information and market data,

software and other technology that provide access to client account data, compliance

and/or practice management-related publications, discounted or gratis consulting

services, discounted and/or gratis attendance at conferences, meetings, and other

educational and/or social events, marketing support, computer hardware and/or

software and/or other products used by Pinnacle Associates in furtherance of its

investment advisory business operations.

As indicated above, certain of the support services and/or products that may be

received may assist Pinnacle Associates in managing and administering client

accounts. Others do not directly provide such assistance, but rather assist Pinnacle

Associates to manage and further develop its business enterprise.

Pinnacle Associates’s clients do not pay more for investment transactions effected

and/or assets maintained at Schwab, Matrix, Chase, Citigroup, Ameritrade, Fidelity

and/or Morgan Stanley as a result of this arrangement. There is no corresponding

commitment made by Pinnacle Associates to Schwab, Matrix, Chase, Citigroup,

Ameritrade, Fidelity and/or Morgan Stanley or any other entity to invest any specific

amount or percentage of client assets in any specific mutual funds, securities or other

investment products as a result of the above arrangement.



regarding the above arrangement and any corresponding perceived conflict of

interest such arrangement may create.

2. As set forth above, Pinnacle Associates may receive client referrals from Schwab,

Ameritrade and/or Fidelity.



regarding the above arrangement and any corresponding perceived conflict of

interest such arrangement may create.

3. Pinnacle Associates will accept directed brokerage arrangements (when a client

requires that account transactions be effected through a specific broker-dealer). In

such client directed arrangements, the client will negotiate terms and arrangements

for their account with that broker-dealer, and Pinnacle Associates will not seek better

execution services or prices from other broker-dealers or be able to “batch” the

client's transactions for execution through other broker-dealers with orders for other

19

accounts managed by Pinnacle Associates. As a result, client may pay higher

commissions or other transaction costs or greater spreads, or receive less favorable

net prices, on transactions for the account than would otherwise be the case.

Please Note: In the event that the client directs Pinnacle Associates to effect

securities transactions for the client's accounts through a specific broker-dealer, the

client correspondingly acknowledges that such direction may cause the accounts to

incur higher commissions or transaction costs than the accounts would otherwise

incur had the client determined to effect account transactions through alternative

clearing arrangements that may be available through Pinnacle Associates.



regarding the above arrangement.

B. To the extent that Pinnacle Associates provides investment management services to its

clients, the transactions for each client account generally will be effected independently,

unless Pinnacle Associates decides to purchase or sell the same securities for several

clients at approximately the same time. Pinnacle Associates may (but is not obligated to)

combine or “bunch” such orders to obtain best execution, to negotiate more favorable

commission rates or to allocate equitably among Pinnacle Associates’s clients differences

in prices and commissions or other transaction costs that might have been obtained had

such orders been placed independently. Under this procedure, transactions will be

averaged as to price and will be allocated among clients in proportion to the purchase and

sale orders placed for each client account on any given day. Pinnacle Associates shall not

receive any additional compensation or remuneration as a result of such aggregation.

Item 13 Review of Accounts

A. For those clients to whom Pinnacle Associates provides investment supervisory services,

account reviews are conducted on an ongoing basis by Pinnacle Associates’s Principals

and/or representatives. All investment supervisory clients are advised that it remains their

responsibility to advise Pinnacle Associates of any changes in their investment objectives

and/or financial situation. All clients (in person or via telephone) are encouraged to

review financial planning issues (to the extent applicable), investment objectives and

account performance with Pinnacle Associates on an annual basis.

B. Pinnacle Associates may conduct account reviews on an other than periodic basis upon

the occurrence of a triggering event, such as a change in client investment objectives

and/or financial situation, market corrections and client request.

C. Clients are provided, at least quarterly, with written transaction confirmation notices and

regular written summary account statements directly from the broker-dealer/custodian

and/or program sponsor for the client accounts. Pinnacle Associates may also provide a

written periodic report summarizing account activity and performance.

20

Item 14 Client Referrals and Other Compensation

A. As referenced in Item 12.A.1 above, Pinnacle Associates may receive an indirect

economic benefit from Schwab, Matrix, Chase, Citigroup, Ameritrade, Fidelity and/or

Morgan Stanley. Pinnacle Associates, without cost (and/or at a discount), may receive

support services and/or products from Schwab, Matrix, Chase, Citigroup, Ameritrade,

Fidelity and/or Morgan Stanley.

Pinnacle Associates’s clients do not pay more for investment transactions effected and/or

assets maintained at Schwab, Matrix, Chase, Citigroup, Ameritrade, Fidelity and/or

Morgan Stanley as a result of this arrangement. There is no corresponding commitment

made by Pinnacle Associates to Schwab, Matrix, Chase, Citigroup, Ameritrade, Fidelity

and/or Morgan Stanley or any other entity to invest any specific amount or percentage of

client assets in any specific mutual funds, securities or other investment products as a

result of the above arrangement.

Pinnacle Associates’s Chief Compliance Officer, Joel Heyman, remains available to

address any questions that a client or prospective client may have regarding the

above arrangement and any corresponding perceived conflict of interest any such

arrangement may create.

B. If a client is introduced to Pinnacle Associates by either an unaffiliated or an affiliated

solicitor, Pinnacle Associates may pay that solicitor a referral fee in accordance with the

requirements of Rule 206(4)-3 of the Investment Advisers Act of 1940, and any

corresponding state securities law requirements. Any such referral fee shall be paid solely

from Pinnacle Associates’s investment management fee, and shall not result in any

additional charge to the client. If the client is introduced to Pinnacle Associates by an

unaffiliated solicitor, the solicitor, at the time of the solicitation, shall disclose the nature

of his/her/its solicitor relationship, and shall provide each prospective client with a copy

of Pinnacle Associates’s written Brochure with a copy of the written disclosure statement

from the solicitor to the client disclosing the terms of the solicitation arrangement

between Pinnacle Associates and the solicitor, including the compensation to be received

by the solicitor from Pinnacle Associates.

Item 15 Custody

Pinnacle Associates shall have the ability to have its advisory fee for each client debited

by the custodian on a quarterly basis. Clients are provided, at least quarterly, with written

transaction confirmation notices and regular written summary account statements directly

from the broker-dealer/custodian and/or program sponsor for the client accounts.

Pinnacle Associates may also provide a written periodic report summarizing account

activity and performance.

Please Note: To the extent that Pinnacle Associates provides clients with periodic

account statements or reports, the client is urged to compare any statement or report

provided by Pinnacle Associates with the account statements received from the account

custodian. Please Also Note: The account custodian does not verify the accuracy of

Pinnacle Associates’s advisory fee calculation.

21

Item 16 Investment Discretion

The client can determine to engage Pinnacle Associates to provide investment advisory

services on a discretionary basis. Prior to Pinnacle Associates assuming discretionary

authority over a client’s account, the client shall be required to execute an Investment

Advisory Agreement, naming Pinnacle Associates as the client’s attorney and agent in

fact, granting Pinnacle Associates full authority to buy, sell, or otherwise effect

investment transactions involving the assets in the client’s name found in the

discretionary account.

Clients who engage Pinnacle Associates on a discretionary basis may, at anytime, impose

restrictions, in writing, on Pinnacle Associates’s discretionary authority (i.e. limit the

types/amounts of particular securities purchased for their account, exclude the ability to

purchase securities with an inverse relationship to the market, limit or proscribe Pinnacle

Associates’s use of margin, etc.).

Item 17 Voting Client Securities

A. Pinnacle Associates utilizes the services of two (2) outside proxy firms, Proxy Edge and

ISS Proxy, for domestic and international proxies, respectively. In addition, Pinnacle

Associates may utilize a third-party service to assist it in voting client proxies. Unless the

client directs otherwise in writing, Pinnacle Associates is responsible for voting client

proxies (However, the client shall maintain exclusive responsibility for all legal

proceedings or other type events pertaining to the account assets, including, but not

limited to, class action lawsuits.). Pinnacle Associates shall vote proxies in accordance

with its Proxy Voting Policy, a copy of which is available upon request. Pinnacle

Associates shall monitor corporate actions of individual issuers and investment

companies consistent with Pinnacle Associates’s fiduciary duty to vote proxies in the best

interests of its clients. Although the factors which Pinnacle Associates will consider

when determining how it will vote differ on a case by case basis, they may, but are not

limited to, include the following: a review of recommendations from issuer management,

shareholder proposals, cost effects of such proposals, effect on employees and executive

and director compensation. With respect to individual issuers, Pinnacle Associates may

be solicited to vote on matters including corporate governance, adoption or amendments

to compensation plans (including stock options), and matters involving social issues and

corporate responsibility. With respect to investment companies (e.g., mutual funds),

Pinnacle Associates may be solicited to vote on matters including the approval of

advisory contracts, distribution plans, and mergers. Pinnacle Associates shall maintain

records pertaining to proxy voting as required pursuant to Rule 204-2 (c)(2) under the

Advisers Act. Copies of Rules 206(4)-6 and 204-2(c)(2) are available upon written

request. In addition, information pertaining to how Pinnacle Associates voted on any

specific proxy issue is also available upon written request. Requests should be made by

contacting Pinnacle Associates’s Chief Compliance Officer, Joel Heyman.

B. As set forth in Item 17.A above, Pinnacle Associates votes client proxies.

22

Item 18 Financial Information

A. Pinnacle Associates does not solicit fees of more than $1,200, per client, six months or

more in advance.

B. Pinnacle Associates is unaware of any financial condition that is reasonably likely to

impair its ability to meet its contractual commitments relating to its discretionary

authority over certain client accounts.

C. Pinnacle Associates has not been the subject of a bankruptcy petition.

ANY QUESTIONS: Pinnacle Associates’s Chief Compliance Officer, Joel

Heyman, remains available to address any questions that a client or prospective

client may have regarding the above disclosures and arrangements.

23

Item 1 Cover Page

A.

Thomas Passios

Pinnacle Associates Ltd.

Brochure Supplement

Dated 3/30/2012


335 Madison Avenue


www.pinnacle-ny.com B.

This brochure supplement provides information about Thomas Passios that supplements

the Pinnacle Associates Ltd. brochure. You should have received a copy of that brochure.

Please contact Joel Heyman, Chief Compliance Officer, if you did not receive Pinnacle

Associates Ltd.’s brochure or if you have any questions about the contents of this

supplement.

Additional information about Thomas Passios is available on the SEC’s website at


Item 2 Education Background and Business Experience

Thomas Passios was born in 1932. Mr. Passios received an Advanced Certificate in Banking,

Accounting, and Economics in 1956. Mr. Passios has served as President of Pinnacle Associates

Ltd. since May of 1984.


None.

24

Item 4 Other Business Activities

A. The supervised person is not actively engaged in any other investment-related

businesses or occupations.

B. The supervised person is not actively engaged in any non-investment-related

business or occupation for compensation.

Item 5 Additional Compensation

None.

Item 6 Supervision

The Registrant provides investment advisory and supervisory services in accordance with the

Registrant’s policies and procedures manual. The primary purpose of the Registrant’s Rule

206(4)-7 policies and procedures is to comply with the requirements of supervision requirements

of Section 203(e)(6) of the Investment Advisor’s Act (“Act”). The Registrant’s Chief

Compliance Officer, Joel Heyman, is primarily responsible for the implementation of the

Registrant’s policies and procedures and overseeing the activities of the Registrant’s supervised

persons. Should an employee or investment adviser representative of the Registrant have any

questions regarding the applicability/relevance of the Act, the Rules thereunder, any section

thereof, or any section of the policies and procedures, he/she should address those questions with

the Chief Compliance Officer. Should a client have any questions regarding the Registrant’s

supervision or compliance practices, please contact Mr. Heyman at (212) 652-3200.

25

Item 1 Cover Page

A.

Peter N. Marron


Brochure Supplement

Dated 3/30/2012


335 Madison Avenue



This brochure supplement provides information about Peter N. Marron that supplements




supplement.

Additional information about Peter N. Marron is available on the SEC’s website at



Peter N. Marron was born in 1949. Mr. Marron graduated from Brooklyn College in 1970, with

a degree in Economics. Mr. Marron graduated from Pace University in 1976, with a Masters in

Business Administration degree in Finance. Mr. Marron joined Pinnacle Associates Ltd. in

January of 1993 where he currently serves as Senior Vice President.

Mr. Marron has been a Chartered Financial Analyst (CFA®) since 1981. CFA

® designates an

international professional certificate that is offered by the CFA Institute. Candidates that pursue

the certification have in-depth knowledge of securities types and investment vehicles. In order to

qualify for a CFA®, candidates must meet standards for examination, education, experience, and

ethics. First, candidates must possess a bachelor’s degree from an accredited school, or its

equivalent. Second, candidates must have completed 48 months of qualified professional work

experience, generally related to evaluating or applying financial, economic, and/or statistical data

26

as part of the investment decision-making process involving securities or similar investment.

Third, candidates must pass a series of three six-hour exams that covers ethics, quantitative

methods, economics, corporate finance, financial reporting and analysis, security analysis, and

portfolio management. Finally, candidates must meet and continue to adhere to a strict Code of

Ethics and Stands governing their professional conduct, as reviewed by the CFA Institute.


None.


A. The supervised person is not actively engaged in any other investment-related businesses

or occupations.

B. The supervised person is not actively engaged in any non-investment-related business or

occupation for compensation.


None.

Item 6 Supervision












27

Item 1 Cover Page

A.

King H. Harris


Brochure Supplement

Dated 3/30/2012


335 Madison Avenue



This brochure supplement provides information about King H. Harris that supplements




supplement.

Additional information about King H. Harris is available on the SEC’s website at



King H. Harris was born in 1951. Mr. Harris graduated from Schiller University in Paris,

France, with a degree in International Finance/Business Administration. Mr. Harris has served as

a Senior Vice President and Portfolio Manager of Pinnacle Associates Ltd. since June of 1998.

Mr. Harris has also been employed as a registered representative of Matrix Capital Group, Inc.

since May of 2002.


None.

28


A. Registered Representative of Matrix. As disclosed in Item 5.E of the Registrant’s

Brochure, Mr. Harris is a registered representative of Matrix Capital Group, Inc.

(“Matrix”), an SEC Registered and FINRA member broker-dealer. Clients may choose to

engage Mr. Harris in his individual capacity as a registered representative of Matrix

Capital Group, Inc., to implement investment recommendations on a commission basis.

1. Conflict of Interest The recommendation by Mr. Harris that a client purchase a

securities commission product presents a conflict of interest, as the receipt of

commissions may provide an incentive to recommend investment products based on

commissions to be received, rather than on a particular client’s need. No client is

under any obligation to purchase any commission products from Mr. Harris. Clients

are reminded that they may purchase investment products recommended by

Registrant through other, non-affiliated broker-dealers. The Registrant’s Chief

Compliance Officer, Joel Heyman, remains available to address any questions

that a client or prospective may have regarding the above conflict of interest.

2. Commissions In the event the client chooses to purchase investment products

through Matrix, brokerage commissions will be charged by Matrix to effect securities

transactions, a portion of which commissions shall be paid by Matrix to Mr. Harris.

The brokerage commissions charged by Matrix may be higher or lower than those

charged by other broker-dealers. In addition, Matrix, as well as Mr. Harris, relative to

commission mutual fund purchases, may also receive additional ongoing 12b-1

trailing commission compensation directly from the mutual fund company during the

period that the client maintains the mutual fund investment. The securities

commission business conducted by Mr. Harris is separate and apart from Registrant’s

investment management services discussed in the Registrant’s Brochure.




None.

Item 6 Supervision









29




30

Item 1 Cover Page

A.

Harold H. Stein


Brochure Supplement

Dated 3/30/2012


335 Madison Avenue



This brochure supplement provides information about Harold H. Stein that supplements




supplement.

Additional information about Harold H. Stein is available on the SEC’s website at



Harold H. Stein was born in 1945. Mr. Stein graduated from Hofstra University in 1968, with a

degree in Management. Mr. Stein graduated from Fairleigh Dickinson University in 1974, with a

Masters in Business Administration degree in Finance. Mr. Stein has been employed as Senior

Portfolio Manager of Pinnacle Associates Ltd. since February of 2003.


None.

31



or occupations.




None.

Item 6 Supervision












32

Item 1 Cover Page

A.

Michael Delfino


Brochure Supplement

Dated 3/30/2012


335 Madison Avenue



This brochure supplement provides information about Michael Delfino that supplements




supplement.

Additional information about Michael Delfino is available on the SEC’s website at



Michael Delfino was born in 1940. Mr. Delfino graduated from Iona College in 1967, with a

Bachelor of Arts degree. Mr. Delfino graduated from Fordham University in 1972, with a

Masters in Business Administration degree. Mr. Delfino has been employed as an investment

adviser representative of Pinnacle Associates Ltd. since January of 2005.


None.

33



or occupations.




None.

Item 6 Supervision












34

Item 1 Cover Page

A.

Timothy J. Piacentini


Brochure Supplement

Dated 3/30/2012


335 Madison Avenue



This brochure supplement provides information about Timothy J. Piacentini that

supplements the Pinnacle Associates Ltd. brochure. You should have received a copy of

that brochure. Please contact Joel Heyman, Chief Compliance Officer, if you did not

receive Pinnacle Associates Ltd.’s brochure or if you have any questions about the contents

of this supplement.

Additional information about Timothy J. Piacentini is available on the SEC’s website at



Timothy J. Piacentini was born in 1967. Mr. Piacentini graduated from Georgetown University

in 1989, with a degree in Economics and American Government and in 2000 with a Masters of

Business Administration degree from University of Chicago with degrees in Finance and

Accounting. Mr. Piacentini has been employed with Pinnacle Associates Ltd. since September

of 2002 and is currently a Senior Portfolio Manager.

Mr. Piacentini has been a Chartered Financial Analyst (CFA®) since September 2002. CFA

®

designates an international professional certificate that is offered by the CFA Institute.

Candidates that pursue the certification have in-depth knowledge of securities types and

investment vehicles. In order to qualify for a CFA®, candidates must meet standards for

examination, education, experience, and ethics. First, candidates must possess a bachelor’s

35

degree from an accredited school, or its equivalent. Second, candidates must have completed 48

months of qualified professional work experience, generally related to evaluating or applying

financial, economic, and/or statistical data as part of the investment decision-making process

involving securities or similar investment. Third, candidates must pass a series of three six-hour

exams that covers ethics, quantitative methods, economics, corporate finance, financial reporting

and analysis, security analysis, and portfolio management. Finally, candidates must meet and

continue to adhere to a strict Code of Ethics and Stands governing their professional conduct, as

reviewed by the CFA Institute.


None.



or occupations.




None.

Item 6 Supervision












36

Item 1 Cover Page

A.

Nancy J. Vang


Brochure Supplement

Dated 3/30/2012


335 Madison Avenue



This brochure supplement provides information about Nancy J. Vang that supplements the

Pinnacle Associates Ltd. brochure. You should have received a copy of that brochure.



supplement.

Additional information about Nancy J. Vang is available on the SEC’s website at



Nancy J. Vang was born in 1942. Ms. Vang graduated from St. Olaf College in 1964, with a

Bachelor of Arts degree in Music Education. Ms. Vang graduated from Northwestern University

in 1965, with a Masters degree in Voice. Ms. Vang has been employed as a Vice President and

Portfolio Manager of Pinnacle Associates Ltd. since February of 1998.


None.

37



or occupations.




None.

Item 6 Supervision












38

Item 1 Cover Page

A.

J. Kenneth Greenburg


Brochure Supplement

Dated 3/30/2012


335 Madison Avenue



This brochure supplement provides information about J. Kenneth Greenburg that




of this supplement.

Additional information about J. Kenneth Greenburg is available on the SEC’s website at



J. Kenneth Greenburg was born in 1934. Mr. Greenburg graduated from The University of

Pennsylvania in 1956, with a degree in Economics. Mr. Greenburg graduated from Harvard Law

School in 1959, with a S.J.D. degree. Mr. Greenburg graduated from the Columbia University

Scholl of Business Administration in 1960, with a Masters of Business Administration degree.

Mr. Greenburg has been employed as a Senior Vice President and Senior Portfolio Manager of

Pinnacle Associates Ltd. since September of 2006.


None.

39



or occupations.




None.

Item 6 Supervision












40

Item 1 Cover Page

A.

Kimon Passios


Brochure Supplement

Dated 3/30/2012


335 Madison Avenue



This brochure supplement provides information about Kimon Passios that supplements the




supplement.

Additional information about Kimon Passios is available on the SEC’s website at



Kimon Passios was born in 1968. Mr. Passios graduated from the University of Vermont in

1990, with a Bachelor of Science degree in Finance/Accounting and in 1998 with a Masters of

Business Administration degree in Finance from Fordham University. Mr. Passios has been

employed as an Executive Vice President and Portfolio Manager for domestic equities of

Pinnacle Associates Ltd. since 1996.


None.

41







None.

Item 6 Supervision












42

Item 1 Cover Page

A.

Carmine D’Avino


Brochure Supplement

Dated 3/30/2012


335 Madison Avenue



This brochure supplement provides information about Carmine D’Avino that supplements




supplement.

Additional information about Carmine D’Avino is available on the SEC’s website at



Carmine D’Avino was born in 1972. Mr. D’Avino graduated from Susquehanna University in

1994, with a Bachelor of Science degree in Finance. Mr. D’Avino has been employed as a Vice

President and Portfolio Manager of Pinnacle Associates Ltd. since 2000.

Mr. D’Avino has been a Certified Financial Planner (CFP®) since 2002. The CFP

® designation

identifies individuals who have completed the mandatory examination, education, experience,

and ethics requirements mandated by the CFP Board. Candidates must have at least three years

of qualifying work experience that relates to financial planning. Candidates are required to hold a

bachelors degree from an accredited university. CFP® candidates must pass an examination that

covers over 100 financial planning topics, which broadly include: general principles of financial

planning, insurance planning and risk management, employee benefits planning, investment

planning, income tax planning, retirement planning, and estate planning. Finally, candidates have

ongoing ethics requirements and oversight by the CFP Board.

43


None.







None.

Item 6 Supervision












44

Item 1 Cover Page

A.

James F. Ferrare


Brochure Supplement

Dated 3/30/2012


335 Madison Avenue



This brochure supplement provides information about James F. Ferrare that supplements




supplement.

Additional information about James F. Ferrare is available on the SEC’s website at



James F. Ferrare was born in 1960. Mr. Ferrare graduated from Buffalo University with a

Bachelor of Science degree in Accounting. Mr. Ferrare has been employed as a Vice President

and Senior Portfolio Manager of Pinnacle Associates Ltd. since 1999.

Mr. Ferrare has held the designation of Certified Public Accountant (“CPA”) since 1986. CPAs

are licensed and regulated by their state boards of accountancy. While state laws and regulations

vary, the education, experience and testing requirements for licensure as a CPA generally include

minimum college education (typically 150 credit hours with at least a baccalaureate degree and a

concentration in accounting), minimum experience levels (most states require at least one year of

experience providing services that involve the use of accounting, attest, compilation,

management advisory, financial advisory, tax or consulting skills, all of which must be achieved

under the supervision of or verification by a CPA), and successful passage of the Uniform CPA

45

Examination. In order to maintain a CPA license, states generally require the completion of 40

hours of continuing professional education (CPE) each year (or 80 hours over a two year period

or 120 hours over a three year period). Additionally, all American Institute of Certified Public

Accountants (AICPA) members are required to follow a rigorous Code of Professional Conduct

which requires that they act with integrity, objectivity, due care, competence, fully disclose any

conflicts of interest (and obtain client consent if a conflict exists), maintain client confidentiality,

disclose to the client any commission or referral fees, and serve the public interest when

providing financial services. The vast majority of state boards of accountancy have adopted the

AICPA’s Code of Professional Conduct within their state accountancy laws or have created their

own.


None.







None.

Item 6 Supervision












46

Item 1 Cover Page

A.

David L. Dineen


Brochure Supplement

Dated 3/30/2012


335 Madison Avenue



This brochure supplement provides information about David L. Dineen that supplements




supplement.

Additional information about David L. Dineen is available on the SEC’s website at



David L. Dineen was born in 1968. Mr. Dineen earned his Bachelor of Science degree in

Management, Magna Cum Laude, with a dual concentration in Finance and Marketing in 1990

from Binghamton University, School of Management. Mr. Dineen also attended New York

University, Leonard N. School of Business and received an MBA in Finance and International

Business. Mr. Ferrare has been employed as a Vice President and Senior Portfolio Manager-

International of Pinnacle Associates Ltd. since 2006.

Mr. Dineen has been a Chartered Financial Analyst (CFA®) since 2000. CFA

® designates an





47









None.







None.

Item 6 Supervision












48

Item 1 Cover Page

A.

Ryan Fause


Brochure Supplement

Dated 3/30/2012


335 Madison Avenue



This brochure supplement provides information about Ryan Fause that supplements the




supplement.

Additional information about Ryan Fause is available on the SEC’s website at



Ryan Fause was born in 1972. Mr. Fause earned his Bachelor of Science degree in Business

Administration, in 1995 from Rowan University. Mr. Fause also attended The City University of

New York, Baruch College, Zicklin School of Business and received a Masters of Finance. Mr.

Fause has been employed as a Vice President and Associate Portfolio Manager of Pinnacle

Associates Ltd. since 2002.


None.

49







None.

Item 6 Supervision












50

Item 1 Cover Page

A.

Monica J. Jalife


Brochure Supplement

Dated 3/30/2012


335 Madison Avenue



This brochure supplement provides information about Monica J. Jalife that supplements


Please contact Joel Heyman, Chief Compliance Officer if you did not receive Pinnacle


supplement.

Additional information about Monica J. Jalife is available on the SEC’s website at



Monica J. Jalife was born in 1975. Ms. Jalife earned her Bachelor of Science degree in Industrial

Engineering, in 2000 from Universidad Iberoamericana in Mexico City where she graduated

with honors. Ms. Jalife also attended Stern School of Business at New York University and

received a Masters of Business Administration degree with concentrations in Finance and Global

Business. Ms. Jalife has been employed as an Associate Portfolio Manager of Pinnacle

Associates Ltd. since 2002.

Ms. Jalife has been a Chartered Financial Analyst (CFA®) since 2009. CFA

® designates an




51










None.







None.

Item 6 Supervision












52

Item 1 Cover Page

A.

Jonathan Mark


Brochure Supplement

Dated 3/30/2012


335 Madison Avenue



This brochure supplement provides information about Jonathan Mark that supplements


Please contact Joel Heyman, Chief Compliance Officer if you did not receive Pinnacle


supplement.

Additional information about Jonathan Mark is available on the SEC’s website at



Jonathan Mark was born in 1969. Mr. Mark earned his Bachelor of Science degree in Finance,

in 1991 from the State University of New York at Buffalo. Mr. Mark also attended Fordham

University and received a Masters of Business Administration degree. Mr. Mark has been

employed as a Portfolio Manager and Senior Securities Analyst of Pinnacle Associates Ltd. since

2000.


None.

53







None.

Item 6 Supervision












54

Item 1 Cover Page

A.

Donald M. Dowd, III


Brochure Supplement

Dated 3/30/2012


335 Madison Avenue



This brochure supplement provides information about Donald W. Dowd, III that




of this supplement.

Additional information about Donald W. Dowd, III is available on the SEC’s website at



Donald W. Dowd, III was born in 1965. Mr. Dowd earned his Bachelor of Arts degree in

History, in 1988 from Kenyon College. Mr. Dowd has been employed as a Vice President of

Pinnacle Associates Ltd. since 2006.


None.

55







None.

Item 6 Supervision












56

Item 1 Cover Page

A.

Eric N. Freedgood


Brochure Supplement

Dated 3/30/2012


335 Madison Avenue



This brochure supplement provides information about Eric N. Freedgood that supplements




supplement.

Additional information about Eric N. Freedgood is available on the SEC’s website at



Eric N. Freedgood was born in 1981. Mr. Freedgood earned his Bachelor of Science degree in

Accounting in 2003 from Binghamton University where he graduated with honors. Mr.

Freedgood has been employed as an Associate Portfolio Manager of Pinnacle Associates Ltd.

since 2006.

Mr. Freedgood has been a Chartered Financial Analyst (CFA®) since 2009. CFA

® designates an








57





Mr. Freedgood holds the designation of Certified Public Accountant . CPAs are licensed and

regulated by their state boards of accountancy. While state laws and regulations vary, the

education, experience and testing requirements for licensure as a CPA generally include

minimum college education (typically 150 credit hours with at least a baccalaureate degree and a

concentration in accounting), minimum experience levels (most states require at least one year of

experience providing services that involve the use of accounting, attest, compilation,

management advisory, financial advisory, tax or consulting skills, all of which must be achieved

under the supervision of or verification by a CPA), and successful passage of the Uniform CPA

Examination. In order to maintain a CPA license, states generally require the completion of 40

hours of continuing professional education (CPE) each year (or 80 hours over a two year period

or 120 hours over a three year period). Additionally, all American Institute of Certified Public

Accountants (AICPA) members are required to follow a rigorous Code of Professional Conduct

which requires that they act with integrity, objectivity, due care, competence, fully disclose any

conflicts of interest (and obtain client consent if a conflict exists), maintain client confidentiality,

disclose to the client any commission or referral fees, and serve the public interest when

providing financial services. The vast majority of state boards of accountancy have adopted the

AICPA’s Code of Professional Conduct within their state accountancy laws or have created their

own.


None.







None.

Item 6 Supervision




58









59

Item 1 Cover Page

A.

Alice Gabriele


Brochure Supplement

Dated 3/30/2012


335 Madison Avenue



This brochure supplement provides information about Eric N. Freedgood that supplements




supplement.

Additional information about Alice Gabriele is available on the SEC’s website at



Alice Gabriele was born in 1961. Ms. Gabriele earned her Bachelor of Arts degree in Politics in

1983 from Princeton University where she graduated magna cum laude. Ms. Gabriele also

earned her Masters in Business Administration degree in Finance with honors from Columbia

Business School in 1987. Ms. Gabriele has been employed as a Vice President and Portfolio

Manager of Pinnacle Associates Ltd. since 2005.


None.

60







None.

Item 6 Supervision












Notice of Privacy Policy We Are Committed To Your Privacy

We collect personal information to open your account(s), to process your transactions and to help us provide a better level of service. We do not sell your personal information to anyone. We protect the security and confidentiality of the personal information we collect.

Our relationship with you is our most important asset. We understand that you have entrusted us with your private financial information, and we do everything we can to maintain that trust.

Details of our approach to privacy and how your personal information is collected and used are set forth in the Pinnacle Privacy Policy below. The Pinnacle Privacy Policy

Pinnacle’s Privacy Policy applies to consumers who are current or former Pinnacle clients.

Throughout the policy, we refer to information that personally identifies you or your accounts as "personal information." 1.We do not sell your personal information to anyone. Pinnacle Associates Ltd. shares information inside the company with Pinnacle ’s International division as part of data processing requirements, for example, to prepare your account statements or service your account(s). 2. We do not disclose personal information to third parties, unless one of the following limited exceptions applies.

• We disclose personal information to companies that help us process or service your transactions or account(s), such as broker-dealers.

• We may disclose or report personal information in limited circumstances where we believe in good faith that disclosure is required or permitted under law, for example, to cooperate with regulators or law enforcement authorities, resolve consumer disputes, perform credit/authentication checks, or for institutional risk control.

Outside of these exceptions, we will not share your personal information with third parties unless you have specifically asked us to do so, that is, opted-in.

3. We do collect personal information in the normal course of business in order to administer your accounts and serve you better.

• Application and registration information. We collect information that you provide to us when you open an account. The information we collect may include name, address, phone number, email address, social security number, and information about your interests, investments, and investment experience.

• Transaction information. Once you have an account with us, to administer your account and better serve you, we collect and maintain personal information about your transactions, including balances, positions, and history.

4. We continue to evaluate our efforts to protect personal information and make every effort to keep your personal information accurate and up to date.

• If you identify any inaccuracy in your personal information, or you need to make a change to that information, please contact us so that we may promptly update our records

5. We will provide notice of changes in our information-sharing practices.

If, at any time in the future, it is necessary to disclose any of your personal information in a way that is inconsistent with this policy, we will give you advance notice of the proposed change so that you will have the opportunity to opt-out of such disclosure.

• If you have any questions or concerns, please contact us at 212-652-3200.

Notice of Online Privacy Policy

At Pinnacle, we take the issue of online privacy very seriously. We want to assure visitors to our site the security, privacy and confidentiality that they expect from a financial services institution.

We do not collect any personal information through the use of our website. Encryption Pinnacle uses encryption technology to protect certain information sent over the Internet. SSL is an encryption technology known as “Secure Sockets Layer”. SSL encrypts transmissions between two parties and verifies the website server you are communicating with. An “s” after the “http” in a website’s address indicates that you are attached to a secure server using SSL technology. Additionally, if your browser is Microsoft Internet Explorer 3.0, Netscape Navigator 4.0, or a higher version of either, a picture of a lock or a key should appear in the lower right hand corner of the browser’s window. Client Authentication Your Pinnacle password is your private entry key into your account. This is how Pinnacle’s website recognizes you. You should never share it with anyone. Your Pinnacle issued password incorporates letters AND numbers. You may change your password but we recommend that you also incorporate both letters and numbers in your new password. Session Variables Session variables, instead of cookies, are used when you choose to access your account statements online. Unlike cookies, which remain on your computer, session variables expire at the end of session. Website Usage Pinnacle does not track users movements on our website or websites linked to our website. After you have finished accessing your Pinnacle account, do not forget to log off. This prevents someone else from accessing your account if you leave your computer and your session has not "timed out," or automatically shut down. To Further Protect Your Privacy While exploring Pinnacle’s website, please be aware that other internet sites accessible from Pinnacle’s website, have separate privacy and data collection policies and practices, which are independent of and may be different from Pinnacle’s policies and practices. Pinnacle is not responsible or liable for these independent policies and practices and it is your responsibility to review them and decide whether or not they satisfactorily protect your rights.

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